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China’s State Administration for Market Regulation (SAMR) has approved Cisco Systems Inc’s purchase of Acacia Communications Inc for 4.5 billion dollars antitrust regulator on condition that the companies ensure fair competition.
SAMR said the companies should continue to service existing contracts and supply customers in China following the principles of fairness, reasonableness, and non-discrimination.
The approval brings to a close the deal, which was previously approved by other countries including the United States.
Network gear maker Cisco, which looking to capture more business from telecom companies, first announced its intention to acquire optical components manufacturer Acacia in 2019.
China has previously gone against decisions by other regulators overseas.
Qualcomm Inc’s planned $44 billion takeover of Dutch chipmaker NXP Semiconductors NV in 2018 collapsed after SAMR stalled on issuing public approval.
However, China approved Infineon Technologies’ $10 billion acquisition of US-based Cypress Semiconductor, and US chipmaker Nvidia’s $6.9 billion purchase of Israel’s Mellanox Inc.
SAMR recently launched an antitrust probe into e-commerce giant Alibaba Group Holding Ltd in its crackdown on anticompetitive behavior in China’s internet space.
